This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EXCO Resources, Inc. Reports Fourth Quarter And Full Year 2012 Results

EXCO Resources, Inc. (NYSE: XCO) (“EXCO”) today announced fourth quarter and full year operating and financial results for 2012.
  • Adjusted net income, a non-GAAP measure adjusting for non-cash gains and losses from derivative financial instruments (derivatives), non-cash ceiling test write-downs and items typically not included by securities analysts in published estimates, was $0.17 per diluted share for the fourth quarter 2012 compared to $0.09 per diluted share for the fourth quarter 2011. Adjusted net income for the full year 2012 was $0.38 per diluted share compared to $0.56 per diluted share for the full year 2011.
  • GAAP results were a net loss of $269 million, or $1.25 per diluted share, for the fourth quarter 2012 and a net loss of $1.4 billion, or $6.50 per diluted share, for the full year 2012. The fourth quarter and full year 2012 include a $324 million and $1.3 billion, respectively, pre-tax non-cash ceiling test write-down of oil and natural gas properties.
  • Oil, natural gas and natural gas liquids (NGL) revenues, before cash settlements on derivatives, for the fourth quarter 2012 were $152 million compared with fourth quarter 2011 revenues of $179 million. Our average sales price per Mcfe decreased to $3.47 per Mcfe for the fourth quarter 2012 from $3.49 in the prior year's quarter. When the impacts of cash settlements from derivatives are considered, oil, natural gas and NGL revenues were $192 million for the fourth quarter 2012, compared with $231 million in the fourth quarter 2011. Oil, natural gas and NGL revenues for the full year 2012, excluding derivatives, were $547 million and $749 million when settlements from derivatives are included. Revenues for the full year 2011 were $754 million, excluding derivatives, and $890 million inclusive of cash settlements from derivatives.
  • Adjusted earnings before interest, taxes, depreciation, depletion and amortization, ceiling test write-downs and other non-cash income and expense items (adjusted EBITDA, a non-GAAP measure) for the fourth quarter 2012 was $122 million compared with $151 million in the prior year's quarter and $468 million for the full year 2012 compared with $605 million for the full year 2011.
  • Oil, natural gas and NGL production was 44 Bcfe, or 477 Mmcfe per day, for the fourth quarter 2012 compared with 512 Mmcfe per day in the third quarter 2012 and 556 Mmcfe per day in the fourth quarter 2011. The declines in production reflect the impacts of our reduced drilling program. At the end of 2011, we had 24 operated drilling rigs throughout our operating regions. During 2012, we reduced that operated rig count to five. Fourth quarter 2012 production from our Haynesville/Bossier shale was 334 Mmcf per day compared with 407 Mmcf per day in the prior year's quarter. Year over year production increased 5% in our Haynesville/Bossier shale area. Fourth quarter 2012 production in our Appalachia region was 50 Mmcfe per day, a 22% increase from fourth quarter 2011. Year over year production increased 30% in our Appalachia region. The increase reflects impacts from our horizontal drilling of Marcellus shale wells. Permian production was flat year over year and compared to prior quarters.
  • Our direct operating costs were $0.41 per Mcfe for the fourth quarter 2012 compared with $0.47 per Mcfe for the fourth quarter 2011. We continue taking significant steps in reducing our operating costs in all operating areas in response to the low natural gas price environment. Specific actions implemented during 2012 include shutting in certain marginal producing wells, reducing compressor rentals, renegotiating water disposal arrangements and modifying chemical treatment programs.
  • TGGT’s average throughput was approximately 1.4 Bcf per day during the fourth quarter 2012, compared with 1.5 Bcf per day during the fourth quarter 2011. Our 50% share of TGGT’s adjusted net income in the fourth quarter 2012 was $13 million, after adjustments for certain non-cash items during the quarter, compared to $10 million during the fourth quarter 2011.
  • On February 14, 2013, we formed a partnership with Harbinger Group Inc. (HGI). Pursuant to the definitive agreements governing the transaction, we contributed our conventional non-shale assets in East Texas and North Louisiana and our shallow Canyon Sand and other assets in the Permian Basin in West Texas to the partnership in exchange for cash consideration of $573 million, after customary preliminary purchase price adjustments, a 24.5% limited partner interest and a 50% interest in the general partner of the partnership. After giving effect to the 2.0% general partner interest in the partnership, we own an economic interest of 25.5% in the partnership. Proceeds received from the formation of the partnership were used to reduce outstanding borrowings under our credit agreement. The partnership has its own credit facility with an initial borrowing base of $400 million to fund its operations and seek accretive acquisitions. Following are selected operating data and financial metrics for 2012 reflecting the pro forma impacts to EXCO for the full year 2012 from the formation of the partnership with HGI:
     
Pro forma adjustments
(dollars in thousands, except per unit rate) Historical EXCO Total Partnership   EXCO's 25.5% share Pro forma EXCO
Reserves (as of December 31, 2012):
Total proved (Mmcfe) 1,009,386 (404,789 ) 103,221 707,818
Production:
Total production (Mmcfe) 189,928 (36,647 ) 9,345 162,626
Average production (Mmcfe/d) 519 (100 ) 26 445
Revenues:
Revenues, excluding derivatives $ 546,609 $ (159,447 ) $ 40,659 $ 427,821
Average realized price ($/Mcfe) 2.88 4.35 4.35 2.63
Expenses:
Direct operating costs 77,127 (46,824 ) 11,940 42,243
Per Mcfe 0.41 1.28 1.28 0.26
Production and ad valorem taxes 27,483 (18,956 ) 4,834 13,361
Per Mcfe 0.14 0.52 0.52 0.08
Gathering and transportation 102,875 (12,841 ) 3,275 93,309
Per Mcfe 0.54 0.35 0.35 0.57
Excess of revenues over operating expenses $ 339,124 $ (80,826 ) $ 20,610 $ 278,908
 

Douglas H. Miller, EXCO’s Chief Executive Officer, commented, "We recognized that 2012 would be a difficult year in terms of natural gas prices so we undertook actions to position ourselves to meet the challenges low prices present. We reduced our drilling rig count from 24 rigs at year-end 2011 to five at the end of 2012. We reduced our employee headcount by 16% and our contractor headcount by 62%. We took other aggressive cost cutting measures as well, reducing our capital spending by 48%, our direct operating expenses by 11% on a per Mcfe basis, and our general and administrative costs by 23% on a per Mcfe basis, year over year. In spite of the decreased drilling and spending, our production increased 3% year over year.

1 of 13

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs